With all the talk of VC๐ฐ drying up, I started to think about what this might mean for aspiring marketplace founders.
![notion image](https://www.notion.so/image/https%3A%2F%2Fs3.us-west-2.amazonaws.com%2Fsecure.notion-static.com%2F20437d82-9977-4338-b426-e97e9fb30e11%2Fmarketplace-downturn2.png%3FX-Amz-Algorithm%3DAWS4-HMAC-SHA256%26X-Amz-Content-Sha256%3DUNSIGNED-PAYLOAD%26X-Amz-Credential%3DAKIAT73L2G45EIPT3X45%252F20221012%252Fus-west-2%252Fs3%252Faws4_request%26X-Amz-Date%3D20221012T165425Z%26X-Amz-Expires%3D86400%26X-Amz-Signature%3D4f19cff70e3cdb2a921eb5fab75b1c1a2f4e4d0af662ae3cd72129fedb5b258d%26X-Amz-SignedHeaders%3Dhost%26x-id%3DGetObject?table=block&id=2aef0344-3ad2-4925-89c2-ba415a9744c7&cache=v2)
This (hopefully) helpful graphic is heavily based on Casey Winters & Gilad Horev
's excellent essay on marketplace types (a must-read ๐โโ๏ธ).
Using their definitions, I assume that there is a directly proportional relationship between:
fee level โ operating expenses โ starting capital needed.
Obviously, in this market, lower starting capital needed (staring from left in green) is better.
โ ๏ธย Disclaimer: Iโm not a VC.
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